China Is Now No. 2 Box Office Behind U.S.

China surpassed Japan in 2012 to become the world's second-largest movie market, behind the U.S., with box office receipts in the world's most populous nation up 36% to $2.7 billion.

The new data, contained in a report released Thursday by the Motion Picture Association of America, underscores the growing importance of China to Hollywood's studios despite the ongoing challenges they face in exporting their movies there.